Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments during December 2021: 1. One hundred and twenty of Donald Companys $1,000 bonds. The bonds pay semiannual interest, return principal in 10 years, and include no other cash flows or other features. Feherty plans to hold 30 of the bonds to collect contractual cash flows over the life of the investment and to hold 90, both to collect contractual cash flows but also to sell them if their price appreciates sufficiently. Subsequent to Fehertys purchase of the bonds, but prior to December 31, the fair value of the bonds increased to $1,030 per bond, and Feherty sold 30 of the 90 bonds. Feherty also sold 15 of the 30 bonds it had planned to hold to collect contractual cash flows over the life of the investment. The fair value of the bonds remained at $1,030 as of December 31, 2021. 2. $25,700 of Watson Company common stock. Feherty does not have the ability to significantly influence the operations of Watson. Feherty elected to account for this equity investment at fair value through OCI (FVOCI). Subsequent to Fehertys purchase of the stock, the fair value of the stock investment increased to $31,400 as of December 31, 2021. Required: 1. Indicate how Feherty would account for its investments when it acquired the Donald bonds and Watson stock. 2. For each of the following categories of Feherty's investments, calculate the effect of realized and unrealized gains and losses on Fehertys net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021: (a) any Donald bonds accounted for at amortized cost that were purchased and held at year end, (b) any Donald bonds accounted for at amortized cost that were purchased and sold, (c) any Donald bonds accounted for at FVOCI that were purchased and held at year end, (d) any Donald bonds accounted for at FVOCI that were purchased and sold, and (e) the Watson stock. Ignore interest revenue and taxes.

Req 1 Reg 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at amortized cost that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021 Effect Net income Other comprehensive income Net effect on comprehensive income Reg 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at amortized cost that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021. Effect Net income Other comprehensive income Net effect on comprehensive income Reg 1 Req 2A Reg 2B Reg 2C Req 2D Req 2E For any Donald bonds accounted for at FVOCI that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021. Effect Net income Other comprehensive income Net effect on comprehensive income Req 1 Reg 2A Reg 2B Reg 2C Req 2D Req 2E For any Donald bonds accounted for at FVOCI that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021. Effect Net income Other comprehensive income Net effect on comprehensive income Reg 1 Reg 2A Req 2B Req 2C Reg 2D Req 2E For the Watson stock, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021. Ignore interest revenue and taxes. Effect Net income Other comprehensive income Net effect on comprehensive income